Addressing liquidations of subsidiaries under §332 (where the parent corporation owns at least 80% of the stock of the subsidiary) as well as liquidations of corporations that do not qualify under §332, the Portfolio considers the tax consequences to both the liquidating corporation and its shareholders. D., The Ohio State University Moritz College of Law; LL. Taxation, Georgetown University Law Center; Former Law Clerk to Hon. The Portfolio highlights traps for unwary taxpayers and discusses planning opportunities in connection with a corporate liquidation. In effect, the default election for such members is a partnership. The partnership reports its income on Form 1065, which is used to allocate the income, deductions, and credits to the partners (who pay the tax). A capital interest is more than a mere right to share in the profits; it is an interest in the assets of the partnership that would be distributed at withdrawal or liquidation. When a capital interest is received by gift, the donees distributive share of income (1) must be figured by reducing income by reasonable compensation for services the donor renders and (2) must not be proportionately greater than the donors share when attributable to capital.
Liquidating Partnership Distributions Gain or Loss to Retiring Partner G. However, if services are provided to tenants, then the organization will be a partnership. For tax years after 1996, an organization of two or more members will be classified as a partnership if it is (1) A corporation under state law, (2) A joint-stock company under state law, (3) An insurance company, (4) Certain banks, (5) An organization wholly owned by a state government, (6) Statutory corporations under the Code, such as publicly traded partnerships, (7) Certain foreign organizations, (8) A tax-exempt organization, (9) A real estate investment trust, (10) Statutory trusts under the Code, and (11) Any organization electing to be classified as a corporation by filing form 8832.
Liquidating Partnership Distributions Basis of Property Received 7. Sale of a Partnership Interest General Consequences B. In addition, certain investment organizations may elect to be excluded from partnership status if all members of the organization elect such exclusion.
Tax Management Portfolio, Corporate Liquidations, No. 784-3rd, analyses the tax considerations in connection with the liquidation of a corporation.
The principal focus of the Portfolio is on liquidations after the repeal of the General Utilities doctrine by the Tax Reform Act of 1986.
The Portfolio also discusses the tax treatment of liquidations before the repeal of that doctrine.
Price: 0 Print Tax Management Portfolio, Corporate Liquidations, No. Partnership Contribution of Property w/o Liabilities (Gain-Loss) C. Determining the Adjusted Basis of a Partners Interest B. Partnership Allocation of Losses Effects of General Liabilities F. Basis of a Partners Interest and Profit & Loss Allocations A. Partnership Allocation of Losses Basic Computations E.784-3rd, analyses the tax considerations in connection with the liquidation of a corporation. Evolution of the Tax Treatment of Corporate Liquidations B. The principal focus of the Portfolio is on liquidations after the repeal of the General Utilities doctrine by the Tax Reform Act of 1986. Bar Taxation Section (Section Chair; Member and Former Chair of the Corporate Tax Committee); American Bar Association Tax Section (Vice Chair, Professional Services Committee; Member, Corporate Tax Committee; Member, Government Relations Committee); frequent speaker and author of various tax articles. Legislative History of the Repeal of the General Utilities Doctrine 1. Timing of Guaranteed Partnership Payment Income and Related Deduction 4.